Answer the following statements true (T) or false (F)
1. Most market economies, such as the U.S. and the U.K., allow government policies and actions aimed at promoting economic growth and stability.
2. In a command economy, the head of each household makes the fundamental economic choices such as what to produce and how to produce output.
3. The economy of the United States can best be described as laissez-faire capitalism.
4. Property rights give to some people the right to coerce others into giving up their property.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
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The recovery from the low point of the Great Depression lasted for ____ months.
A. 12 B. 25 C. 50 D. 90
The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for
A) supply-side policy. B) nonactivists. C) activists. D) demand-management policy.
A good that is neither rival nor exclusive is called
a. a private good b. a public good c. a quasi-private good d. an external good e. an open access good
The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal
a. True b. False Indicate whether the statement is true or false